Market Cap
UK£2.9b
Last Updated
2021/01/26 01:34 UTC
Data Sources
Company Financials +
Executive Summary
Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in the United Kingdom, rest of Europe, North America, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with reasonable growth potential.
Share Price & News
How has Diploma's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DPLM is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: DPLM's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
11.1%
DPLM
0.7%
GB Trade Distributors
-1.0%
GB Market
1 Year Return
21.1%
DPLM
21.4%
GB Trade Distributors
-7.7%
GB Market
Return vs Industry: DPLM underperformed the UK Trade Distributors industry which returned 23.3% over the past year.
Return vs Market: DPLM exceeded the UK Market which returned -6.3% over the past year.
Shareholder returns
| DPLM | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.1% | 0.7% | -1.0% |
| 30 Day | 13.2% | 3.4% | 2.2% |
| 90 Day | 6.2% | 19.2% | 18.5% |
| 1 Year | 22.9%21.1% | 23.2%21.4% | -4.0%-7.7% |
| 3 Year | 112.8%102.2% | 51.2%39.8% | 4.0%-8.7% |
| 5 Year | 296.9%261.3% | 122.8%97.1% | 43.8%15.9% |
Long-Term Price Volatility Vs. Market
How volatile is Diploma's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Should You Use Diploma's (LON:DPLM) Statutory Earnings To Analyse It?3 weeks ago | Simply Wall St
Did You Participate In Any Of Diploma's (LON:DPLM) Fantastic 236% Return ?1 month ago | Simply Wall St
Have Insiders Been Buying Diploma PLC (LON:DPLM) Shares This Year?Valuation
Is Diploma undervalued compared to its fair value and its price relative to the market?
54.47x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: DPLM (£23.68) is trading above our estimate of fair value (£16.64)
Significantly Below Fair Value: DPLM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: DPLM is poor value based on its PE Ratio (54.5x) compared to the GB Trade Distributors industry average (25.9x).
PE vs Market: DPLM is poor value based on its PE Ratio (54.5x) compared to the UK market (22.9x).
Price to Earnings Growth Ratio
PEG Ratio: DPLM is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: DPLM is overvalued based on its PB Ratio (5.6x) compared to the GB Trade Distributors industry average (1.6x).
Next Steps
Future Growth
How is Diploma forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
21.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DPLM's forecast earnings growth (21.8% per year) is above the savings rate (1%).
Earnings vs Market: DPLM's earnings (21.8% per year) are forecast to grow slower than the UK market (25.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DPLM's revenue (11.7% per year) is forecast to grow faster than the UK market (6.6% per year).
High Growth Revenue: DPLM's revenue (11.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DPLM's Return on Equity is forecast to be very high in 3 years time (41%).
Next Steps
Past Performance
How has Diploma performed over the past 5 years?
10.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DPLM has high quality earnings.
Growing Profit Margin: DPLM's current net profit margins (9.2%) are lower than last year (11.4%).
Past Earnings Growth Analysis
Earnings Trend: DPLM's earnings have grown by 10.8% per year over the past 5 years.
Accelerating Growth: DPLM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DPLM had negative earnings growth (-20.4%) over the past year, making it difficult to compare to the Trade Distributors industry average (-22.8%).
Return on Equity
High ROE: DPLM's Return on Equity (9.4%) is considered low.
Next Steps
Financial Health
How is Diploma's financial position?
Financial Position Analysis
Short Term Liabilities: DPLM's short term assets (£385.2M) exceed its short term liabilities (£110.5M).
Long Term Liabilities: DPLM's short term assets (£385.2M) exceed its long term liabilities (£53.4M).
Debt to Equity History and Analysis
Debt Level: DPLM is debt free.
Reducing Debt: DPLM has no debt compared to 5 years ago when its debt to equity ratio was 10.5%.
Debt Coverage: DPLM has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: DPLM has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Diploma current dividend yield, its reliability and sustainability?
1.27%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DPLM's dividend (1.27%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.53%).
High Dividend: DPLM's dividend (1.27%) is low compared to the top 25% of dividend payers in the UK market (4.57%).
Stability and Growth of Payments
Stable Dividend: DPLM's dividend payments have been volatile in the past 10 years.
Growing Dividend: DPLM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (69%), DPLM's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DPLM's dividends in 3 years are forecast to be well covered by earnings (44.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Johnny Thomson (48 yo)
1.92yrs
Tenure
UK£999,000
Compensation
Mr. Jonathan Thomson, also known as Johnny, has been Chief Executive Officer and Director at Diploma PLC since February 25, 2019. He served as Group Finance Director at Compass Group International B.V. unt...
CEO Compensation Analysis
Compensation vs Market: Johnny's total compensation ($USD1.36M) is about average for companies of similar size in the UK market ($USD1.91M).
Compensation vs Earnings: Johnny's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.92yrs | UK£999.00k | 0.030% £ 882.0k | |
| CFO & Director | 0.58yr | UK£229.42k | 0.0013% £ 39.2k | |
| Group Financial Controller | 2yrs | no data | no data | |
| Group Company Secretary | 0.67yr | no data | no data | |
| Finance Director of International Seals | 2.25yrs | no data | no data |
1.9yrs
Average Tenure
Experienced Management: DPLM's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.92yrs | UK£999.00k | 0.030% £ 882.0k | |
| CFO & Director | 0.58yr | UK£229.42k | 0.0013% £ 39.2k | |
| Independent Non-Executive Director | 5.92yrs | UK£62.00k | 0.0044% £ 130.3k | |
| Senior Independent Director | no data | UK£62.00k | 0.0024% £ 71.0k | |
| Non-Executive Chairman | 6yrs | UK£146.00k | 0.0056% £ 165.6k | |
| Independent Non-Executive Director | 1yr | UK£35.00k | no data |
1.9yrs
Average Tenure
59.5yo
Average Age
Experienced Board: DPLM's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DPLM insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.9%.
Top Shareholders
Company Information
Diploma PLC's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Diploma PLC
- Ticker: DPLM
- Exchange: LSE
- Founded: 1999
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: UK£2.947b
- Shares outstanding: 124.44m
- Website: https://www.diplomaplc.com
Number of Employees
Location
- Diploma PLC
- 12 Charterhouse Square
- London
- Greater London
- EC1M 6AX
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DPLM | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| DPLML | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| DP9 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
Biography
Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in the United Kingdom, rest of Europe, North America, and internationally. It operates through three segmen...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/26 01:34 |
| End of Day Share Price | 2021/01/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/09/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.